China International Capital Corporation (CICC) forecasts that Hong Kong’s initial public offering (IPO) market will remain vibrant through 2026, fuelled by listings from high-end manufacturing and technology firms, even as the bull run in the A-share market draws some issuers back to the mainland.
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“We believe the heat in Hong Kong’s IPO market will continue next year, particularly in sectors aligned with national priorities such as robotics and advanced manufacturing,” Shi Qi, deputy head of capital markets at the investment bank, said during a briefing on Tuesday.
CICC currently led peers with a pipeline of over 100 IPOs, according to the bank, reflecting strong demand from Chinese companies seeking international capital.
Shi noted that while IPO fundraising on the mainland had jumped to about 90 billion yuan (US$12.6 billion) so far this year from more than 60 billion yuan last year, Chinese regulators were taking a cautious approach, so capital flows were unlikely to be diverted entirely from Hong Kong.
Hong Kong raised HK$216 billion (US$27.8 billion) from IPOs in the first 10 months of this year, according to data from the Hong Kong stock exchange.
“Even as the A-share market shines in this year’s bull run, Hong Kong remains attractive for quality issuers seeking global investors and valuation flexibility,” she said.
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